Modifying The Rates of Duty on Certain Imported Articles as Provided Under The Tariff and Customs Code of 1978, As Amended, in order to Implement The Preferential Tariff Rates on Certain Products Under The Asean Industrial Cooperation (AICO) Scheme, in favor of Toyota Motor Philippines Corporation (TOYOTA) - (COE Nos. TOYOTA/2002/26 & TOYOTA/2002/27)

Executive Order No. 128

Summary of Executive Order No. 128

Preferential Tariff Rates for Toyota Motor Philippines Corporation under ASEAN Industrial Cooperation (AICO) Scheme

- The Philippines is a party to the ASEAN Industrial Cooperation (AICO) Scheme, which allows preferential tariff rates for participating companies. (Preamble)
- Toyota Motor Philippines Corporation (Toyota) is participating in the AICO Arrangement along with companies from Malaysia and Thailand. (Preamble)
- Under the Toyota AICO Arrangement:
- Toyota will import certain original equipment manufacture (OEM) automotive parts/components for Toyota Corolla and Camry passenger cars from Malaysia and Thailand. (Preamble)
- In exchange, Malaysia and Thailand will import complementary OEM component parts for Corolla and Camry from the Philippines. (Preamble)
- AICO Certificate of Eligibility Nos. Toyota/2002/26 and Toyota/2002/27 were issued on July 4, 2002, in favor of the participating companies. (Preamble)
- Participating companies in the approved Toyota AICO Arrangements shall qualify for 0-5% preferential tariff rates from Malaysia, Thailand, and the Philippines. (Preamble)
- The articles listed in Annex "A" shall be accorded the AICO rate of 5% on parts/components of Toyota Corolla and Camry passenger cars. (Section 1)
- The AICO rate shall be accorded to the AICO entities in Malaysia (Assembly Services Sdn. Bhd. and T&K Autoparts Sdn. Bhd) and Thailand (Toyota Motor Thailand, Co. Ltd.) upon the effectivity of this Executive Order. (Section 2)
- If any subsequent changes are made to the basic Philippine rate of duty on any of the articles listed in Annex "A" to a rate lower than the AICO rate, such articles shall automatically be accorded the corresponding reduced rate of duty. Effective January 1, 2003, the final CEPT rate on the subject articles shall apply. (Section 3)
- Upon the effectivity of this Executive Order, the articles listed in Annex "A" entered or withdrawn from warehouses in the Philippines for consumption shall pay the applicable AICO preferential tariff rate, subject to qualification under the Rules of Origin for the CEPT, as evidenced by the Certificate of Origin - Form "D". (Section 4)
- Any revision to the part numbers appearing in Column 4 of Annex "A" shall be communicated immediately to the Bureau of Customs by the Board of Investments within five (5) days after receipt of the official copy of the revised part numbers from the ASEAN Secretariat. (Section 5)
- This Executive Order shall take effect immediately. (Section 6)